GFNORTEGFNORTE 1Q10 Results

Conference Call

1

Conference CallApril 30, 2010.

Yearly Recap GFNorteMillion Pesos

1Q09 1Q10

Net Income 1 611 1 580(2%)Net Income 1,611 1,580

ROE 16.8% 15.2%

Recurring Net Income 1,477 1,5807%

ROA 1.1% 1.1%

Efficiency 52% 51%

Performing Loan Growth 18% 1%

Net Interest Margin 4.6% 4.2%

Book Value Per Share 19.26 20.80

Past Due Loan Ratio 2.3% 2.5%

8%

2

Book Value Per Share 19.26 20.80

8%

Income StatementMILLION PESOS

Net Interest Income 6,199 5,554 5,562 0% (10%)

1Q09 4Q09 1Q10 YoYChange

QoQNet Interest Income 6,199 , , 0% (10%)Non Interest Income 2,065 2,719 2,681 (1%) 30%

Service Fees 1,447 1,761 1,614 (8%) 12%Recoveries 372 537 481 (10%) 29%FX & Trading 246 421 585 39% 138%

Total Income 8,264 8,273 8,243 (0%) (0%)Non Interest Expense 4,324 4,604 4,190 (9%) (3%)p , , , ( ) ( )

Net Operating Income 3,941 3,669 4,053 10% 3%Provisions 2,162 1,782 1,772 (1%) (18%)Non Operating Income 413 152 18 (88%) (96%)Non Operating Income 413 152 18 (88%) (96%)Income Tax 574 496 659 33% 15%Subs & Minority Interest (6) (41) (60) 46% 900%Net Income 1,611 1,502 1,580 5% (2%), , , ( )

3

Quarterly Net IncomeMILLION PESOS

1 611 1 80

(2%)

1,312

1,6111,428 1,502 5%

1,580

2Q091Q09 3Q09 4Q09 1Q10

4

2Q091Q09 3Q09 4Q09 1Q10

Non Interest ExpenseBILLION PESOS

1Q10 QoQChange

YoY1Q09 4Q09

Total Income

Non Interest Expense

8.28.2 8.2

4.64.3 4.2 (9%) (3%)

-%-%

EFFICIENCY RATIO56%

52%

56%

51%

5

1Q09 4Q09 1Q10

DepositsBILLION PESOS

1Q10 QoQChange

YoY1Q09 4Q09

Time

QoQ YoY

8582 86 2% 5%

Demand 137120 126 5%(8%)

Time 8582 86

Core Deposits 222203 212 (5%) 5%

2% 5%

Money Market 5353 59 13% 12%

Total 275255 271 (1%) 6%Total 275255 271 (1%) 6%

6

BILLION PESOS

Performing Loan Portfolio

235238 237

1Q09 4Q09 1Q10

YoYChange

QoQ

1Q09 4Q09 1Q10

1Q09 4Q09 1Q10 YoYQoQ

Commercial

Consumer

(5%) (10%)

2% 3%

89

74

84

75

80

76

Co e c a

Corporate

Government

( %) ( %)

(3%) (10%)

5% 43%

44

29

40

39

39

41

7

Total (1%) 1%235 238 237

Performing Consumer Loan PortfolioBILLION PESOS

74 75 76

1Q09 4Q09 1Q10

1Q09 4Q09 1Q10 YoYChange

QoQ

Q Q Q

Car

Mortgage

YoYQoQ

3% 1%

2% 9%

8

46

7

49

8

50

Credit Card

Payroll / Personal

(5%) (19%)

7% 8%

14

6

12

6

11

7

8

Consumer 2% 3%74 75 76

Loans to Deposits RatioTOTAL LOANS / TOTAL DEPOSITS

93%103%

87% 88%

1Q091Q08 4Q09 1Q10

9

Funding and Loan Portfolio Structure

FUNDING LOAN PORTFOLIO$292 Billion Pesos $243 Billion Pesos

CommercialConsumer

Inter-bankLoans

43%20%

7%

34%17%

11%GovernmentDemandMoney Market

43%20% 34%17%

17%Corporate

30% 21%p

MortgagesTime

10

Market ShareMarch 2010

CORE DEPOSITS PERFORMING LOANS

Scotia Scotia

BBVABancomer

27%

Scotia6%

Inbursa7%

BBVABancomer

30%

HSBC9%

6%

HSBC12%

Inbursa10%

Santander13%

Santander12%33°° 33°°

Banamex Citibank

22%Banorte

13%

Banamex Citibank

20%Banorte

13%

Source: CNBV. 11

Asset Quality and Capitalization

12

Asset QualityBILLION PESOS

Total Loan Portfolio

1Q09 4Q09 1Q10

239 240 238

Past Due Loans

Loan Loss Reserves

Total Loan Portfolio

5.6

6.1

239

6.2

7.5

240

6.1

7.5

238

RESERVECOVERAGE RATIO

PAST DUE LOANRATIO

122%109%

122%2.5%2 3% 2.5%109%2.3%

1Q09 4Q09 1Q101Q09 4Q09 1Q1013

Asset Quality without INB

RESERVECOVERAGE RATIO

PAST DUE LOANRATIO

145%139%2.4%

2 2%

COVERAGE RATIORATIO

145%108%

139%2.1%2.2%

1Q09 4Q09 1Q101Q09 4Q09 1Q10

14

Past Due Loan Ratios

2Q09 3Q091Q09 1Q104Q09

Payroll

Credit Cards

3.0%

14.4%13.6%

2.9% 2.8%

12.7% 10.5%

2.1%2.8%

12.0%

Car

Mortgage

3.0%

1.9%

2.5%

1.7%

2.7%

2.0%

1.4%

1.7%

2.0%

2.1%

Commercial

Corporate

3.4%

0.1%

2.6%

0%

3.6%

0.1%

5.0%

0.1%

4.0%

0.1%

Government 0%0% 0% 0%

2 3% 2 6% 2 5% 2 5%

0%

2 5%

1515

2.3% 2.6% 2.5% 2.5%2.5%

March 2010

Industry PDL Ratios

3.7%4.2%

3.8%

2.1%*

1.4%1.6%1.7%

Scotia BancomerHSBC Banorte InbursaBanamexSantander

Source: CNBV. Banorte does not include INB. 16

Capitalization

Tier 1

2Q09

10.7%

3Q09

10.9%

1Q09

9.7%

4Q09

12.0%

1Q10

12.1%

Tier 2 4.9% 5.2%4.9% 4.8% 4.7%

TOTAL

% Ti 1

15.6%

69%

16.1%

68%

14.6%

66%

16.8%

71%

16.8%

72%% Tier 1 69% 68%66% 71% 72%

1717

February 2010

Industry Capitalization Ratios

20 7%19.2%

17.0%14.8%

20.7%

17.0%16.8%

12.4%

Banamex HSBC Bancomer SantanderScotiaInbursa Banorte

18Source: CNBV. Banorte’s ratio corresponds to March 2010.

Subsidiaries

19

Recovery BankMILLION PESOS

1Q09 1Q10

Net Income

AUM

146 18023%

BILLION PESOS

1Q101Q09 4Q09 ChangeYoY

Proprietary Assets

Acquired Assets 33

26

(10%)

28%

29

32

29

34

YoY

q

Investment Projects

IPAB

( )

3 38%

2 (73%)

4

0.4

4

0.4

Total20

64 6%

( )

66 68

Long Term SavingsNET INCOME IN MILLION PESOS

1Q09 1Q10

Total 119 1233%

AFORE INSURANCEANNUITIES

77

30

77

48

70

ROE29%ROE

ROE28% ROE

23%(10%)

125

29%22%

ROE9%

63%

(59%) ROE4%

21

1Q09 1Q091Q091Q10 1Q10 1Q104%

Long Term Savings

ASSETS UNDER MANAGEMENTASSETS UNDER MANAGEMENTBillion pesos

4Q091Q09 1Q10 ChangeYoY

AFORE

Insurance 12.3

72.3

8%

34%

12.3

75.6

11.4

56.3

Annuities

Total

18.2 28%

102.8 29%

19.8

107.7

15.5

83.2Total 102.8 29%107.783.2

22

Subsidiaries NET INCOME IN MILLION PESOS

BROKER DEALERLEASING AND FACTORING WAREHOUSING

94 10294ROE31%

ROE27%

9%

40

78

ROE22%

7 3ROE22% ROE

9%(50%)

4092%

22%

ROE14%

23

1Q09 1Q10 1Q09 1Q109%

1Q09 1Q10

Inter National BankMILLION DOLLARS

1Q09 1Q10

10.3 7.0Earnings before loan loss provisions

0.9 10.5

6.1 (2.1)

Loan Loss Reserves

Net Income

3.9% 3.5%

16.0% (2.1%)

MIN

ROE

11%

1.4% (0.4%)

44.8% 61.9%

ROA

Efficiency

11%1,566 1,731

1,136 1,009

2 3% 11 4%

(11%)

Total Deposits

Performing Loans

PD R i

24

2.3% 11.4%

54.0% 21.4%

PDL Ratio

Coverage Ratio

Million dollars

Inter National Bank

Change1Q09 1Q10

Net Interest Income 15.5 14.8 (4%)

Non Interest Income

Total Income

15.5 14.8 (4%)

3.1 3.7 18%

18.6 18.5 (1%)

Non Interest Expense

Earnings before provisions

( )

8.4 11.5 37%

10.3 7.0 (32%)

Loan Loss Provisions

Net Income

0.9 10.5 1026%

6.1 (2.1) (135%)

Performing Loans

Past Due Loans

1,136 1,009 (11%)

27 130 379%

25

Total Deposits 1,566 1,731 11%

Funding and Loan Structure

DEPOSITS ASSETS$1.74 billion dollars $1.73 billion dollars

0 3%

Inter-bank Investments

34.1%41 2% Demand

0.3%

53.3%41.2%

58.4%

Ti 11 8%

Commercial

Consumer

Mortgages 0.9%Time 11.8%

26

Consumer

Capitalization

1Q09 4Q09 1Q10

Leverage 8.2% 9.3% 9.0%

Capitalization

Tier 1

Tier 2

12.1% 15.9% 16.1%

1.2% 1.3% 1.3%

p

Total

P t Ti 1

13.3% 17.1% 17.4%

90 7% 92 6% 92 7%Percentage Tier 1 90.7% 92.6% 92.7%

27

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